Spot prices on the world’s major east-west container trades have remained stable in the first two weeks following China’s annual ‘Golden Week’, which normally signals the end of peak season.
Ocean freight spot rates on the world’s major east-west container trades appear to be have held firm in the first two weeks following China’s annual Golden Week period, a week that in normal years signals the end of container shipping’s annual peak season.
However, demand and prices this year have remained strong in an extended container shipping peak period, in which cargo owners continue to rebuild inventory following the disruptions to demand and supply earlier this year.
In its assessment of rates in the week to 15 October, Drewry’s latest composite World Container index (combining the freight rate assessments on eight major East-West trades) nudged up by 0.1%, week on week, to US$2,586 per 40ft container – more than double its level (+108.3%) when compared with the same period of 2019.
Freight rates from Shanghai to Rotterdam and Shanghai to Genoa climbed 1% to reach $2,211 and $2,730 for 40ft box respectively – up 83% and 93%, year on year, respectively. Back-haul rates from Rotterdam to Shanghai inched up by 2% to $1,100 for a 40ft container, up 86% year on year.
And spot rates on Shanghai-Los Angeles remained at near-record highs of $4,053 per feu, almost three times (+189%) their level last year. Meanwhile, rates on Shanghai-New York ($4,881, +104%), Los Angeles-Shanghai, and New York-Rotterdam also remained hovering around the previous week’s rates, although freight rates on Rotterdam-New York dipped $118 to stand at $2,016 for a 40ft container.
Drewry said it expects rates to remain stable this week.
Rates remain stable this week
And that expectation broadly seems to be playing out in practice. This week’s Shanghai Containerised Freight Index showed spot rates down 0.2% to $3,841 and 0.1% to $4,619 per feu on the China-US west coast and China-US east coast, respectively, Lloyd’s List reports. The biggest drop was reported on the China to northern Europe route, falling 5.7% to $1,084 per teu, while China to Mediterranean rates increased by 3.1% to $1,239 per loaded 20 ft box, in a six-year high for the westbound trade, Lloyd’s List highlighted.
On the supply and demand side, the Shanghai Shipping Exchange indicates that transpacific and Asia-Europe volumes both remain steady, with reports of utilisation levels still in the high nineties on respective services out of the big Asian hubs, Lloyd’s List notes.
Source: World Maritime News
